NEW YORK-BASED STRUCTURED PRODUCTS ATTORNEYS

Structured products are investment types that meet the specific needs of investors through the presentation of a customized mix of products. Structured products basically use derivatives that are created by banks for organizations, hedge funds, or the retail market. Do you currently own structured product investments but wish to get out of the contract?

Speak to one of our securities attorneys at Weltz Law to learn about the legal procedures involved in terminating your agreement. Call (877) 905-7671.

Understanding Structured Products

Structured products can vary in terms of complexity and scope. These criteria depend on the overall risk tolerance outlook of the investor. Structured products basically involve exposing investors to fixed income markets and different derivatives with a structured product investment starting out with a traditional security like a certificate of deposit. This is in replacement of the common payment features with non-traditional payout methods that do not come directly from the issuer, but from one or more underlying assets.

Are Structured Products a Good Investment?

Despite the complexity and history of structured products, studies have shown that they do provide an overall positive return for their investors. Previously, structured products were subject to confusion amongst investors. Thus, it is highly recommended for any potential investor to first understand fully that there are risks of them not making any returns at all through such an investment option. Diversification of your investment portfolio is a great suggestion to broaden your horizons.

Benefits of Structured Products

Investors who wish to limit their capital risks can consider structured products as an investment. As most of the investment money is put aside for protection, structured products offer an average risk investment option. The investment will only incur losses if the person holding the deposit becomes solvent. Nonetheless, the worst-case scenario still offers the investor with a compensation amount from the issuer, but it applies only to structured deposits as structured investments are not similarly protected.

Risks of Structured Products

There is also a chance of structured product investments providing absolutely no return. Even though this is unlikely, its risks cannot be ruled out entirely. A loss of return upon maturity is also possible because of inflation or other unfortunate situations that may take place with the issuer. The investment money has been given to the investment issuer, hence if they default or become solvent, the deposit will be lost. Therefore, you need to fully understand the terms and conditions of the structured product investment option to know the protection provided.

New York Based Attorneys Representing Clients Nationwide

If you are an investor of structured products and find that your investment is not leading you toward your investment goal, seek legal advice immediately. Our experienced attorneys can help navigate through the legal processes involved in terminating your investment agreement to help you recover your losses. Contact us today.